Saturday 19 August 2017

Hildebrand to get payoff of €735,900

banking

The Swiss National Bank (SNB) will pay its former chairman a full year's salary of around SFr900,000 (€735,900), in spite of his stepping down voluntarily in only the second week of the year.

The bank said Philipp Hildebrand's contract entitled him to 12 months' pay. The first six months covered his notice period, with the remainder compensating him for a clause in his contract preventing him from working for another bank until next January.

The payoff will stoke a political storm in Switzerland over Mr Hildebrand's departure after revelations of currency transactions by his wife, and is likely to fuel the wider debate in Europe over bankers' remuneration.

The news came as the Swiss government said it might not appoint a new SNB chairman until at least April, much later than expected.

Eveline Widmer-Schlumpf, finance minister and head of state this year under Switzerland's revolving presidency, said it would probably be "a matter of a few months, maybe April or May", before a new chairman would be appointed.

The comments came as the government appointed a special commission to examine ways to improve supervision of the SNB.

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